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ScanSource Inc. extends CEO’s contract

On the heels of a 2% year-over-year gain in net sales, ScanSource Inc. has extended its contract with CEO Michael Baur.

The technology products producer’s board of directors voted to extend Baur’s contract through June 2020, according to the company’s filing with the Securities and Exchange Commission.

According to the agreement, Baur will earn $875,000 annually with the potential for an “incentive compensation opportunity” and an annual equity award, both subject to the company’s compensation committee.

Baur started the company in December 1992 and has been its CEO since January 2000.

The company also extended the contract of CFO Gerald Lyons through June 2018. Lyons joined ScanSource in 2007 as its vice president and corporate controller. He served as interim CFO following the November 2016 resignation of Charles Mathis who had served as the company’s CFO since December 2012. According to the company, Mathis left ScanSource to take a financial executive position with a defense industry company.

In the third quarter, ending in March, ScanSource reported net sales of $813.5 million, a 2% year-over-year increase from the $798 million in sales in the same quarter in 2016. The company’s operating income saw an 8% drop year-over-year from $21.6 million in 2016 to $20 million in the second quarter of 2017.

Company sales were off by 3% in the previous quarter as the company reported sales of $904.8 million compared to $932.6 million reported in the first quarter. There was a 2% increase in operating income quarter-over-quarter, but an 18% drop off year-over year.

Its forecast for the fourth quarter, which ends June 30, is for sales to be between $860 million and $920 million.